2017 Trends in Global Employee Engagement - Report | Aon 2017 Trends in Global Employee Engagement - Report

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62% (-3%)

61% (+2%)

58% (-2%)

75% (+3%)

64% (-1%)

While global employee engagement levels are decreasing throughout the world, some regions are experiencing increased levels.

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Fewer than one quarter (24 percent) of employees are highly engaged and 39 percent are moderately engaged

Global employee engagement rates have fallen from 2015 to 2016

“As engagement falls, businesses can expect greater turnover, higher absenteeism, lower customer satisfaction – all factors that will significantly contribute to poor financial performance.” Ken Oehler, Global Culture & Engagement Practice leader at Aon Hewitt

in revenue growth in the subsequent year.

Improving engagement can pay dividends: a 5 point increase in employee engagement is linked to a

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The rise of populism and disruptive technologies is challenging organizations in an unprecedented way. 2017 brings ambiguity. Organizations - and their leaders - will need to make decisions on how to best engage their employees.

Ways leaders can overcome challenges and re-engage their workforce.

2016

2015

Unique regional challenges organizations face.

Key drivers of employee engagement from a global and regional perspective.

The latest report from Aon Hewitt examines how global employee engagement levels have changed over the last year and the forces that are likely causing these shifts. We explore and offer insights on the:

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ASIA PACIFIC

Asia Pacific saw the biggest decline in employee engagement dropping from 65 percent in 2015 to 62 percent in 2016.

Rewards and recognition programs were ranked as a top opportunity to improve engagement by employees in Asia.

Fairness in reward programs and success in colleague recognition are increasingly critical to achieving a highly engaged and high performing workforce in APAC.

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AFRICA

After a significant three-point drop in engagement from 2014 – 2015, Africa nearly reclaimed that loss as engagement increased from 59 percent to 61 percent.

Much of the recent political volatility in the region has settled and the employee engagement increases were bolstered by improvements in the region’s two biggest economies—Nigeria and Egypt.

It is believed that 2017 will be much better in terms of growth in Africa, however, organizations should be prepared for the lagged effect between 2016 economic forces and 2017 employee engagement.

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EUROPE

Europe, which has the lowest engagement of all the regions, saw employee engagement drop by two points to 58 percent, giving up the gains experienced in the previous year.

The 2016 coup in Turkey and the 2016 Brexit vote are likely causing feelings of uncertainty leading to such decreased levels of employee engagement.

Twice as many countries (14) in the region had engagement declines than those countries with improvements.

The situation in Europe will be important to watch this year. The Netherlands, France, Germany and Italy all have elections that could determine the fate of the E.U. There is also uncertainty in Eastern Europe taking into account the overall

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LATIN AMERICA

Mexico saw a 4 percentage point decline (79 percent to 75 percent). Engagement for workers in Brazil increased 8 points to 77 percent. Amidst political and economic volatility and uncertainty, engagement in Venezuela was down 11 points to 69 percent.

While not all countries in Latin America saw rising engagement, they remain above the global engagement rate.

Latin America saw the biggest regional increase in engagement, growing from 72 percent in 2015 to 75 percent in 2016.

Mexico is challenged with a slowing in trade and great uncertainty with U.S. relations. Conditions are improving in Brazil with the political change which has generated confidence by investors and consumers. Columbia has benefited from more dynamic

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NORTH AMERICA

Even though engagement in the United States fell only one point, every one of the 15 work experience dimensions declined. This could be an early indication that engagement may recede further in the near future.

Canada saw a slight improvement on the engagement index, from 69 percent of employees to 70 percent. The biggest improvements were in Canadian’s perceptions of Employee Value Proposition, Enabling Infrastructure, and Career Opportunities.

Engagement in North America fell a modest one point to 64 percent of employees.

Right now there are a lot of unknowns in the United States and throughout North America as a result of the political landscape - from bringing in talent from other countries to changes in healthcare and LGBT rights. Even the future of NAFTA is

- Ken Oehler, Global Culture & Engagement Practice leader at Aon Hewitt.

"Leaders should understand that this actually reflects employees’ perceptions of fairness. While organizations may not be able to make sweeping changes to compensation, it is important that they take steps to address these sentiments. The ability for leaders to have the personal sensitivity required to lead people and their organizations to growth is paramount in this intensely changing environment."

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GLOBAL

Rewards and recognition ranked as the strongest engagement opportunity this year, a significant jump from ranking third in 2016.

Senior leadership strength and the degree of forward thinking decision-making was another top priority.

Employee engagement dropped from 65% in 2015 to 63% in 2016.

The rise in populist movements like those in the U.S., the U.K. and other regions is creating angst within organizations as they anticipate the potential for a decrease in free labor flow. Along with rapid advances in technology that are increasingly

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Managing during change is not an easy task

In times of global uncertainty and volatility, the conventional wisdom doesn't always apply when it comes to improving engagement.

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Managing a company through times of uncertainty requires a different approach, as external factors and sentiment can impact the workplace. To quickly address challenges and also capitalize on market shifts, organizations – and their leaders – must be agile. Our experts explore how organizations can best manage their teams during times of change.

While certain regions like Latin America and Africa are experiencing increases in their organizations' employee engagement levels, other regions such as Asia, Europe, and North America are facing decreased levels. How can you ensure that your organization is poised to lead the way through the ambiguity, fear, and uncertainty in the current environment?

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